Correlation Between Shenzhen MTC and Bank of XiAn
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By analyzing existing cross correlation between Shenzhen MTC Co and Bank of XiAn, you can compare the effects of market volatilities on Shenzhen MTC and Bank of XiAn and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shenzhen MTC with a short position of Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and Bank of XiAn.
Diversification Opportunities for Shenzhen MTC and Bank of XiAn
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Bank is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn and Shenzhen MTC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shenzhen MTC Co are associated (or correlated) with Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Shenzhen MTC i.e., Shenzhen MTC and Bank of XiAn go up and down completely randomly.
Pair Corralation between Shenzhen MTC and Bank of XiAn
Assuming the 90 days trading horizon Shenzhen MTC is expected to generate 1.7 times less return on investment than Bank of XiAn. In addition to that, Shenzhen MTC is 1.1 times more volatile than Bank of XiAn. It trades about 0.02 of its total potential returns per unit of risk. Bank of XiAn is currently generating about 0.04 per unit of volatility. If you would invest 365.00 in Bank of XiAn on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Bank of XiAn or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. Bank of XiAn
Performance |
| Timeline |
| Shenzhen MTC |
| Bank of XiAn |
Shenzhen MTC and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and Bank of XiAn
The main advantage of trading using opposite Shenzhen MTC and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC position performs unexpectedly, Bank of XiAn can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Shenzhen MTC vs. Biwin Storage Technology | Shenzhen MTC vs. China Construction Bank | Shenzhen MTC vs. Agricultural Bank of | Shenzhen MTC vs. China Mobile Limited |
| Bank of XiAn vs. Luyin Investment Group | Bank of XiAn vs. Jointo Energy Investment | Bank of XiAn vs. Hunan Investment Group | Bank of XiAn vs. Harbin Hatou Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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